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Wednesday, July 6, 2022

MCX Nickel expected to trade between 899.1-922.9

Technically MCX Nickel market is getting support at 905.2 and below same could see a test of 899.1 level, And resistance is now likely to be seen at 917.1, a move above could see prices testing 922.9.

Nickel on MCX settled down -0.36% at 911.20 dropped on long liquidation while prices moved in range despite LME prices for nickel traded 0.8 percent higher at $12,800 as the dollar gained strength after the Fed’s January meeting minutes hinted at a possible hike in interest rate sometime this year due to a fairly strong labor market and the overall strength in the economy.

The greenback’s rise despite weak economic data prompted traders to shun the metal. The global nickel market was mostly balanced in December compared to a deficit of 5,800 tonnes in November but 2018 showed a wider shortfall of the metal than in the previous year, the INSG said. In December the deficit narrowed to just 700 tonnes from a larger gap in November.

But the market widened its annual shortfall to 127,600 tonnes from one of 115,100 in 2017, the data showed.  In economic news, a report from the Labor Department said first-time claims for U.S. unemployment benefits fell more than expected in the week ended February 16th, dropping to 216,000, down 23,000 from previous week’s unrevised level of 239,000.

According to data released by the Commerce Department, durable goods orders surged up by a less than expected 1.2% in December, after jumping by an upwardly revised 1% in November.

Now a day ahead economic data slated for release today include Germany’s fourth-quarter GDP growth and February Ifo business climate index, the eurozone’s January CPI and US weekly oil rig count report from Baker Hughes. Officials from China and the US will continue their trade negotiations in Washington today.

Trading Ideas:
–Nickel trading range for the day is 899.1-922.9.
–Nickel dropped on profit booking and US and Chinese trade negotiators will kick off their new round of talks in Washington.
–Fed said the U.S. economy and its labour market remained strong, prompting some expectations of at least one more interest rate hike this year.
–The dollar found strength in minutes from a U.S Federal Reserve meeting that raised expectations of a possible U.S. interest rate increase this year.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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